Pico Oil has encountered oil pay at its well located in the South Ramadan concession offshore Egypt.
The South Ramadan Concession is located offshore in the Gulf of Suez. SDX Energy is a 12.75% equity owner in the concession with Pico holding 37.5% and operatorship and GPC holding the remaining 50%.
SDX Energy said on Monday that the SRM-3 well at South Ramadan reached a target depth of 15,635 feet and the operator has reported encountering 75 feet of net conventional oil pay in the Matulla section (primary target), 20 feet of net conventional oil pay in the Brown Limestone formation and a further 15 feet of net conventional oil pay in the Sudr section. The well will be completed in the Matulla section and then tested to establish whether the well will flow at a commercial rate.
In addition, at South Disouq concession, where SDX holds a 55% working interest and is the operator, the development lease application submitted by SDX and its partner has been approved by the relevant authorities and construction of the pipeline and central facility have started. First production from the license remains on track to start towards the end of H1 2019, with SDX expecting to achieve a gross plateau production rate of conventional natural gas of between 50-60 MMscf/d.
The 170km2 3D seismic acquisition program at South Disouq is 50% complete and is expected to conclude in early February. The seismic data will then be processed and interpreted by the end of Q3 2019, with drilling on the license set to resume shortly thereafter.
Paul Welch, President & CEO of SDX Energy, commented: “The company has made a positive start to 2019, with operational progress continuing to be made across the Egyptian portfolio. The reservoir sections encountered in the SRM-3 well are encouraging and we look forward to seeing how this interval performs when tested, as this will provide additional insight on the volume potential of the section.
“SDX has made considerable headway at South Disouq, and following formal approval from the authorities, the relevant construction work is well underway.”